Read this somewhere before

1. The first and most important rule is - in bull markets, one is supposed to be long. This may sound obvious, but how many of us have sold the first rally in every bull market, saying that the market has moved too far, too fast. I have before, and I suspect I'll do it again at some point in the future. Thus, we've not enjoyed the profits that should have accrued to us for our initial bullish outlook, but have actually lost money while being short. In a bull market, one can only be long or on the sidelines. Remember, not having a position is a position.

Agreed.

2. Buy that which is showing strength - sell that which is showing weakness. The public continues to buy when prices have fallen. The professional buys because prices have rallied. This difference may not sound logical, but buying strength works. The rule of survival is not to "buy low, sell high", but to "buy higher and sell higher". Furthermore, when comparing various stocks within a group, buy only the strongest and sell the weakest.

In general it is right, but somebody follow this rule will end up with buy at top and sell at the bottom. There is no better way to make you go broke faster. Finding what is still on the up trend and what is topped is very hard. If you can do that, congrats! You'd be a billionair with no time.

所有跟帖： 

• 回复：Read this somewhere before -Freewilly- ♂ (774 bytes) () 10/06/2006 postreply 21:29:48

• 回复：回复：Read this somewhere before -Freewilly- ♂ (1466 bytes) () 10/06/2006 postreply 21:32:46

• 回复：回复：回复：Read this somewhere before -Freewilly- ♂ (3717 bytes) () 10/06/2006 postreply 21:43:03

• Good points, agree with all of your comments -meishi- ♂ (0 bytes) () 10/07/2006 postreply 07:43:34